THE ENEMY PROPERTY ACT, 1968 

_________ 

ARRANGEMENT OF SECTIONS 
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SECTIONS 

1. Short title, extent, application and commencement. 

2. Definitions. 

3. Appointment of Custodian of Enemy Property for India and Deputy Custodian, etc.  

4. Appointment of Inspectors of Enemy Property. 

5.  Property  vested  in  the  Custodian  of  Enemy  Property  for  India  under  the  Defence  of  India    

Rules, 1962 and the Defence of India Rules, 1971 to continue to vest in Custodian.  

6. Transfer of property vested in Custodian by enemy on enemy subject or enemy firm. 

7. Payment to Custodian of money otherwise payable to an enemy, enemy subject or enemy firm. 

8. Power of Custodian in respect of enemy property vested in him. 

8A. Sale of Property by Custodian. 

9. Exemption from attachment, etc. 

10. Transfer of securities belonging to an enemy. 

10A. Power to issue certificate of sale. 

11. Powers of Custodian to summon persons and call for documents. 

12. Protection for complying with orders of Custodian. 

13. Validity of action taken in pursuance of orders of Custodian.  

14. Proceedings against companies whose assets vest in Custodian. 

15. Returns as to enemy property.  

16. Registers of returns. 

17. Levy of fees. 

18. Transfer of property vested as enemy property in certain cases. 

18A. Income not liable to be returned. 

 18B. Exclusion of jurisdiction of civil courts. 

 18C. Appeal to High Court. 

 19. Protection of action taken under the Act. 

 20. Penalty.   

 21. Offences by companies.       

 22. Effect of laws inconsistent with the Act.  

 22A. Validation. 

 23. Power to make rules. 

 24. Certain orders made under the Defence of India Rules, 1962 and the Defence of India Rules, 

1971 to continue in force. 

 25. Repeal and saving. 

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THE ENEMY PROPERTY ACT, 1968 

ACT NO. 34 OF 1968 

[20th August, 1968.]  

An  Act  to  provide  for  the  continued  vesting  of  enemy  property  vested  in  the  Custodian  of 
Enemy Property for India under the Defence of India Rules, 1962  1[and the Defence of 
India Rules, 1971], and for matters connected therewith.  

BE it enacted by Parliament in the Nineteenth Year of the Republic of India as follows:— 

1. Short title, extent, application and commencement.—(1) This Act may be called the Enemy 

Property Act, 1968.  

(2) It extends to the whole of India  2*** and it applies also to all citizens of India outside India 
and  to  branches  and  agencies  outside  India  of  companies  or  bodies  corporate  registered  or 
incorporated in India.  

(3) It shall be deemed to have come into force on the 10th day of July, 1968. 

2. Definitions.—In this Act, unless the context otherwise requires,—  

(a)  “Custodian”  means  the  Custodian  of  Enemy  Property  for  India  appointed  or  deemed  to 
have been appointed under section 3 and includes a Deputy Custodian and an Assistant Custodian 
of Enemy Property appointed or deemed to have been appointed under that section;  

(b) “enemy” or “enemy subject” or  “enemy firm” means a person or country who or which 
was an enemy, 3[an enemy subject including his legal heir and successor whether or not a citizen 
of India or the citizen of a country which is not an enemy or the enemy, enemy subject or his legal 
heir and successor who has changed his nationality] or 4[an enemy firm, including its succeeding 
firm whether or not partners or members of such succeeding firm are citizen of India or the citizen 
of a country which is not an enemy or such firm which has changed its nationality], as the case 
may be, under the Defence of India Act, 1962 (51 of 1962), and the Defence of India Rules, 1962 
5[or  the  Defence  of  India      Act,  1971  (42  of  1971)  and  the  Defence  of  India  Rules,  1971],  but 
6[does  not  include  a  citizen  of  India  other  than  those  citizens  of  India,  being  the  legal  heir  and 
successor of the "enemy" or "enemy subject" or "enemy firm”].  

7[Explanation 1.—For the purposes of this clause, the expression "does not include a citizen 
of India" shall exclude and shall always be deemed to have been excluded those citizens of India, 
who  are  or  have  been  the  legal  heir  and  successor  of  an  "enemy"  or  an  "enemy  subject"  or  an 
"enemy firm" which or who has ceased to be an enemy due to death, extinction, winding up of 
business or change of nationality or that the legal heir and successor is a citizen of India or the 
citizen of a country which is not an enemy.  

Explanation 2.—For the purposes of this clause, it is hereby clarified that nothing contained 
in this Act shall affect any right of the legal heir and successor referred to in this clause (not being 
inconsistent to the provisions of this Act) which have been conferred upon him under any other 
law for the time being in force;] 

(c) “enemy property” means any property for the time being belonging to or held or managed 

on behalf of an enemy, an enemy subject or an enemy firm:  

1. Ins. by Act 40 of 1977, s. 2 (w.e.f. 27-9-1977). 
2. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule 
   (w.e.f. 31-10- 2019). 
3. Subs. by Act 3 of 2017, s. 2 “for enemy subject” (w.e.f. 10-7-1968). 
4. Subs. by s. 2, ibid., for certain words (w.e.f. 10-7-1968). 
5. Ins. by Act 40 of 1977, s. 3 (w.e.f. 27-9-1977). 
6. Subs. by Act 3 of 2017, s. 2, for certain words (w.e.f. 10-7-1968). 
7. Ins. by s. 2, for ibid. (w.e.f. 10-7-1968). 

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Provided  that  where  an  individual  enemy  subject  dies  in  the  territories  to  which  this  Act 
extends, 6[or dies in any territory outside India], any property which immediately before his death, 
belonged to or was held by him or was managed on his behalf, may, notwithstanding his death, 
continue to be regarded as enemy property for the purposes of this Act; 

1[Explanation 1.—For the purposes of this clause, it is hereby clarified that "enemy property" 
shall, notwithstanding that the enemy or the enemy subject or the enemy firm has ceased to be an 
enemy due to death, extinction, winding up of business or change of nationality or that the legal 
heir and successor is a citizen of India or the citizen of a country which is not an enemy, continue 
and always be deemed to be continued as an enemy property.  

Explanation 2.—For the purposes of this clause, the expression "enemy property" shall mean 
and include and shall be deemed to have always meant and included all rights, titles and interest 
in, or any benefit arising out of, such property;] 

(d) “prescribed” means prescribed by rules made under this Act. 

3. Appointment of Custodian of Enemy Property for India and Deputy Custodian, etc.—The 
Central  Government  may,  by  notification  in  the  Official  Gazette,  appoint  a  Custodian  of  Enemy 
Property for India and one or more Deputy Custodians and Assistant Custodians or Enemy Property 
for such local areas as may be specified in the notification:  

Provided that the Custodian of Enemy Property for India and any Deputy Custodian or Assistant 
Custodian of Enemy Property appointed under the Defence of India Rules, 1962  2[or the Defence of 
India Rules, 1971, as the case may be], shall be deemed to have been appointed under this section. 

4.  Appointment  of  Inspectors  of  Enemy  Property.—The  Central  Government  may,  either 
generally  or  for  any  particular  area,  by  notification  in  the  Official  Gazette,  appoint  one  or  more 
Inspectors  of  Enemy  Property  for  securing  compliance  with  the  provisions  of  this  Act  and  may,  by 
general  or  special  order,  provide  for  the  distribution and  allocation  of the  work  to  be  performed  by 
them for securing such compliance:  

Provided that every Inspector of Enemy Firms appointed under the Defence of India Rules, 1962 
3[or  the  Defence  of  India  Rules,  1971,  as  the  case  may  be],  shall  be  deemed  to  be  an  Inspector  of 
Enemy Property appointed under this section. 

5. Property vested in the Custodian of Enemy Property for India under the Defence of India 
Rules,  1962,  and  the  Defence  of  India  Rules,  1971  to  continue  to  vest  in  Custodian.—4[(1)] 
Notwithstanding the expiration of the Defence of India Act, 1962 (51 of 1962), and the Defence of 
India  Rules,  1962,  all  enemy  property  vested  before  such  expiration  in  the  Custodian  of  Enemy 
Property for India appointed under the said Rules and continuing to vest in him immediately before 
the commencement of this Act, shall, as from such commencement, vest in the Custodian. 

5[(2)  Notwithstanding  the  expiration  of  the  Defence  of  India  Act,  1971  (42  of  1971)  and  the 
Defence of India Rules, 1971, all enemy property vested before such expiration in the Custodian of 
Enemy Property for India appointed under the said Rules and continuing to vest in him immediately 
before  the  commencement  of  the  Enemy  Property,  (Amendment)  Act,  1977  (40  of  1977)  shall,  as 
from such commencement, vest in the Custodian.] 

6[(3)  The  enemy  property  vested  in  the  Custodian  shall,  notwithstanding  that  the  enemy  or  the 
enemy subject or the enemy firm has ceased to be an enemy due to death, extinction, winding up of 
business or change of nationality or that the legal heir and successor is a citizen of India or the citizen 
of a country which is not an enemy, continue to remain, save as otherwise provided in this Act, vested 
in the Custodian. 

1. Ins. by Act 3 of 2017, s. 2 (w.e.f. 10-7-1968). 
2. Ins. by Act 40 of 1977, s. 4 (w.e.f. 27-9-1977). 
3. Ins. by s. 5, ibid (w.e.f. 27-9-1977). 
4. Section 5 renumbered as sub-section (1) thereof by s. 6, ibid. (w.e.f. 27-9-1977). 
5. Ins. by s. 6, for ibid. (w.e.f. 27-9-1977). 
6. Ins. by Act 3 of 2017, s. 3 (w.e.f. 10-7-1968).  

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Explanation.—For  the  purposes  of  this  sub-section,  "enemy  property  vested  in  the  Custodian" 
shall include and shall always be deemed to have been included all rights, titles, and interest in, or any 
benefit arising out of, such property vested in him under this Act.] 

1[5A. Issue of certificate by Custodian. —The Custodian may, after making such inquiry as he 
deems necessary, by order, declare that the property of the enemy or the enemy subject or the enemy 
firm described in the order, vests in him under this Act and issue a certificate to this effect and such 
certificate shall be the evidence of the facts stated therein.] 

2[5B. Law of succession or any  custom or usage not to apply to enemy property.—Nothing 
contained  in  any  law  for  the  time  being  in  force  relating  to  succession  or  any  custom  or  usage 
governing succession of property shall apply in relation to the enemy property under this Act and no 
person (including his legal heir and successor) shall have any right and shall be deemed not to have 
any  right  (including  all  rights,  titles  and  interests  or  any  benefit  arising  out  of  such  property)  in 
relation to such enemy property.  

Explanation.—For the purposes of this section, the expressions "custom" and "usage" signify any 
rule which, having been continuously and uniformly observed for a long time, has obtained the force 
of law in the matters of succession of property.] 

3[6. Prohibition to transfer any property vested in Custodian by an enemy, enemy subject or 
enemy firm.—(1) No enemy or enemy subject or enemy firm shall have any right and shall never be 
deemed  to  have  any  right  to  transfer  any  property  vested  in  the  Custodian  under  this  Act,  whether 
before or after the commencement of this Act and any transfer of such property shall be void and shall 
always be deemed to have been void.  

(2) Where any property  vested in the Custodian under this Act had been transferred, before the 
commencement  of  the  Enemy  Property  (Amendment  and  Validation)  Act,  2017,  by  an  enemy  or 
enemy subject or enemy firm and such transfer has been declared, by an order, made by the Central 
Government,  to  be  void,  and  the  property  had  been  vested  or  deemed  to  have  been  vested  in  the 
Custodian  [by  virtue  of  the  said  order  made  under  section  6,  as  it  stood  before  its  substitution  by 
section  6  of  the  Enemy  Property  (Amendment  and  Validation)  Act,  2017]  such  property  shall, 
notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other 
authority,  continue  to  vest  or  be  deemed  to  have  been  vested  in  the  Custodian  and  no  person 
(including  an  enemy  or  enemy  subject  or  enemy  firm)  shall  have  any  right  or  deemed  to  have  any 
right (including all rights, titles and interests or any benefit arising out of such property) over the said 
property vested or deemed to have been vested in the Custodian.] 

7. Payment to Custodian of money otherwise payable to an enemy, enemy subject or enemy 
firm.—(1)  Any  sum  payable  by  way  of  dividend,  interest,  share  profits  or  otherwise  to  or  for  the 
benefit  of  an  enemy  or  an  enemy  subject  or  an  enemy  firm  shall,  unless  otherwise  ordered  by  the 
Central Government, be paid by the person by whom such sum would have been payable but for the 
prohibition under the Defence of India Rules, 1962 4[or the Defence of India Rules, 1971, as the case 
may be], to the Custodian or such person as may be authorised by him in this behalf and shall be held 
by the Custodian or such person subject to the provisions of this Act.  

(2)  In  cases  in  which  money  would,  but  for  the  prohibition  under  the  Defence  of  India                    

Rules,  1962  4[or  the  Defence  of  India  Rules,  1971,  as  the  case  may  be],  be  payable  in  a  foreign 
currency to or for the benefit of an enemy or an enemy subject or an enemy firm (other than cases in 
which money is payable under a contract in which provision is made for specified rate of exchange), 
the payment shall be made to the Custodian in rupee currency at the middle official rate of exchange 
fixed  by  the  Reserve  Bank  of  India  on  the  date  on  which  the  payment  became  due  to  that  enemy, 
enemy subject or enemy firm.  

(3) The Custodian shall, subject to the provisions of section 8, deal with any money paid to him 
under the Defence of India Rules, 1962 4[or the Defence of India Rules, 1971, as the case may be] or 

1. Ins. by Act 3 of 2017, s. 4 (w.e.f. 7-1-2016). 
2. Ins. by s. 5, ibid. (w.e.f. 10-7-1968). 
3. Subs. by s. 6, ibid., for section 6 (w.e.f. 10-7-1968). 
4.  Ins. by Act 40 of 1977, s. 7 (w.e.f. 27-9-1977). 

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under  this  Act  and  any  property  vested  in  him  under  this  Act  in  such  manner  as  the  Central 
Government may direct. 

8. Power of Custodian in respect of enemy property vested in him.— 1[(1) With respect to the 
property  vested  in  the  Custodian  under  this  Act,  the  Custodian  may  take  or  authorise  the  taking  of 
such measures as he considers necessary or expedient for preserving such property till it is disposed of 
in accordance with the provisions of this Act.]  

(2) Without prejudice to the generality of the foregoing provision, the Custodian or such person as 

may be specifically authorised by him in this behalf, may, for the said purpose,— 

(i) carry on the business of the enemy;  

2[(ia) fix and collect the rent, standard rent, lease rent, licence fee or usage charges, as the case 

may be, in respect of enemy property;] 

(ii) take action for recovering any money due to the enemy;  

(iii) make any contract and execute any document in the name and on behalf of the enemy;  

(iv)  institute,  defend  or  continue  any  suit  or  other  legal  proceeding,  refer  any  dispute  to 

arbitration and compromise any debts, claims or liabilities;  

2[(iva) secure vacant possession of the enemy property by evicting the unauthorised or illegal 

occupant or trespasser and remove unauthorised or illegal constructions, if any]. 

(v) raise on the security of the property such loans as may be necessary;  

(vi)  incur  out  of  the  property  any  expenditure  including  the  payment  of  any  taxes,  duties, 
cesses  and  rates  to  Government  or  to  any  local  authority  and  of  any  wages,  salaries,  pensions, 
provident fund contributions to, or in respect of, any employee of the enemy and the repayment of 
any debts due by the enemy to persons other than enemies;  

(vii) transfer by way of sale, mortgage or lease or otherwise dispose of any of the properties;  

(viii) invest any moneys held by him on behalf of enemies for the purchase of Treasury Bills 
or  such  other  Government  securities  as  may  be  approved  by  the  Central  Government  for  the 
purpose;  

(ix) make payments to the enemy and his dependents;  

(x) make payments on behalf of the enemy to persons other than those who are enemies, of 

dues outstanding on the 25th October, 1962 3[or on the 3rd December, 1971]; and  

(xi)  make  such  other  payments  out  of  the  funds  of  the  enemy  as  may  be  directed  by  the 

Central Government.  

Explanation.—In  this  sub-section  and  in  sections  10  and  17,  “enemy”  includes  an  enemy 

subject and an enemy firm. 

4[8A.  Sale  of  property  by  Custodian.—(1)  Notwithstanding  anything  contained  in  any 
judgment, decree or order of any court, tribunal or other authority or any law for the time being in 
force, the Custodian may, within such time as may be specified by the Central Government in this 
behalf,  dispose  of  whether  by  sale  or  otherwise,  as  the  case  may  be,  with  prior  approval  of  the 
Central  Government,  by  general  or  special  order,  enemy  properties  vested  in  him  immediately 
before the date of commencement of the Enemy Property (Amendment and Validation) Act, 2017 
in accordance with the provisions of this Act, as amended by the Enemy Property (Amendment 
and Validation) Act, 2017.  

(2) The Custodian may, for the purpose of disposal of enemy property under sub-section (1), 
make requisition of the services of any police officer to assist him and it shall be the duty of such 
officer to comply with such requisition. 

1. Subs. by Act 3 of 2017, s. 7, for sub-section (1) (w.e.f. 10-7-1968). 
2. Ins. by s. 7, ibid. (w.e.f. 10-7-1968). 
3. Ins. by Act 40 of 1977, s. 8 (w.e.f. 29-7-1977). 
4. Ins. by Act 3 of 2017, s. 8 (w.e.f. 7-1-2016). 

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(3)  The  Custodian  shall,  on  disposal  of  enemy  property  under  sub-section  (1)  immediately 
deposit the sale proceeds into the Consolidated Fund of India and intimate details thereof to the 
Central Government. 

 (4) The Custodian shall send a report to the Central Government at such intervals, as it may 
specify,  for  the  enemy  properties  disposed  of  under  sub-section  (1),  containing  such  details, 
(including  the  price  for  which  such  property  has  been  sold  and  the  particulars  of  the  buyer  to 
whom  the  properties  have  been  sold  or  disposed  of  and  the  details  of  the  proceeds  of  sale  or 
disposal deposited into the Consolidated Fund of India) as it may specify.  

(5)  The  Central  Government  may,  by  general  or  special  order,  issue  such  directions  to  the 
Custodian on the matters relating to disposal of enemy property under sub-section (1) and such 
directions shall be binding upon the Custodian and the buyer of the enemy properties referred to 
in that sub-section and other persons connected to such sale or disposal. 

 (6)  The  Central  Government  may,  by  general  or  special  order,  make  such  guidelines  for 

disposal of enemy property under sub-section (1). 

 (7) Notwithstanding  anything contained in this section, the Central Government may direct 
that  disposal  of  enemy  property  under  sub-section  (1)  shall  be  made  by  any  other  authority  or 
Ministry  or  Department  instead  of  Custodian  and  in  that  case  all  the  provisions  of  this  section 
shall apply to such authority or Ministry or Department in respect of disposal of enemy property 
under sub-section (1).  

(8)  Notwithstanding  anything  contained  in  sub-sections  (1)  to  (7),  the  Central  Government 

may deal with or utilise the enemy property in such manner as it may deem fit.] 

9.  Exemption  from  attachment,  etc.—All  enemy  property  vested  in  the  Custodian  under  this 
Act shall be exempt from attachment, seizure or sale in execution of decree of a civil court or orders 
of any other authority. 

10.  Transfer  of  securities  belonging  to  an  enemy.—(1)  Where,  in  exercise  of  the  powers 
conferred  by  section  8,  the  Custodian  proposes  to  sell  any  security  issued  by  a  company  and 
belonging to an enemy, the company may, with the consent of the Custodian, purchase the securities, 
notwithstanding  anything  to  the  contrary  in  any  law  or  in  any  regulations  of  the  company  and  any 
securities so purchased may be re-issued by the company as and when it thinks fit so to do.  

(2) Where the Custodian executes and transfers any securities issued by a company, the company 
shall, on receipt of the transfer and an order in this behalf from the Custodian, register the securities in 
the  name  of  the  transferee,  notwithstanding  that  the  regulations  of the  company  do  not  permit  such 
registration in the absence of the certificate, script or other evidence of title relating to the securities 
transferred:  

Provided that any such registration shall be without prejudice to any lien or charge in favour of 
the  company  and  to  any  other  lien  or  charge  of  which  the  Custodian  gives  express  notice  to  the 
company.  

Explanation.—In  this  section,  “securities”  includes  shares,  stocks,  bonds,  debentures  and 

debenture stock but does not include bills of exchange. 

1[10A. Power to issue certificate of sale.—(1) Where the Custodian proposes to sell any enemy 
immovable  property  vested  in  him,  to  any  person,  he  may  on  receipt  of  the  sale  proceeds  of  such 
property,  issue  a  certificate  of  sale  in  favour  of  such  person  and  such  certificate  of  sale  shall, 
notwithstanding the fact that the original title deeds of the property have not been handed over to the 
transferee, be valid and conclusive proof of ownership of such property by such person.  

(2) Notwithstanding anything contained in any law for the time being in force, the certificate of 
sale,  referred  to  in  sub-section  (1),  issued  by  the  Custodian  shall  be  a  valid  instrument  for  the 
registration  of  the  property  in  favour  of  the  transferee  and  the  registration  in  respect  of  enemy 
property for which such certificate of sale had been issued by the Custodian, shall not be refused on 
the ground of lack of original title deeds in respect of such property or for any such other reason.]. 

1. Ins. by Act 3 of 2017, s. 9 (w.e.f. 7-1-2016). 

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11. Power of Custodian to summon persons and call for documents.—(1) The Custodian may, 
by  notice  in  writing,  require  any  person  whom  he  believes  to  be  capable  of  giving  information 
concerning any enemy property to attend before him at such time and place as may be specified in the 
notice and examine any such person concerning the same, reduce his statement to writing and require 
him to sign it.  

(2) The Custodian may, by notice in writing, require any person whom he believes to have in his 
possession or control any account book, letter book, invoice, receipt or other document of whatever 
nature relating to any enemy property, to produce the same or cause the same to be produced before 
the Custodian at such time and place as may be specified in the notice and to submit the same to his 
examination and to allow copies of any entry therein or any part thereof to be taken by him. 

1[(3)  The  Custodian,  Deputy  Custodian  or  Assistant  Custodian  shall  have,  for  the  purposes  of 
exercising powers or discharging his functions under this Act, the same powers as are vested in a civil 
court under the Code of Civil Procedure,1908 (5 of 1908), while dealing with any case under this Act, 
in respect of the following matters, namely:— 

(a) requiring the discovery and inspection of documents; 

(b) enforcing the attendance of any person, including any officer dealing with land, revenue 

and registration matters, banking officer or officer of a company and examining him on oath; 

(c) compelling the production of books, documents and other records; and 

(d) issuing commissions for the examination of witnesses or documents.] 

12. Protection for complying with orders of Custodian.—Where any order with respect to any 
money or property is addressed to any person by the Custodian and accompanied by a certificate of 
the  Custodian  that  the  money  or  property  is  money  property  vested  in  him  under  this  Act,  the 
certificate shall be evidence of the facts stated therein and if that person complies with the orders of 
the  Custodian,  he  shall  not  be  liable  to  any  suit  or  other  legal  proceeding  by  reason  only  of  such 
compliance. 

13. Validity of action taken in pursuance of orders of Custodian.—Where under this Act,—  

(a) any money is paid to the Custodian; or  

(b) any property is vested in the Custodian or an order is given to any person by the Custodian 
in  relation  to  any  property  which  appears  to  the  Custodian  to  be  enemy  property  vested  in  him 
under  this Act,  

neither the payment, vesting nor order of the Custodian nor any proceedings in consequence thereof 
shall be invalidated or affected by reason only that at a material time,—  

(i) some person who was  or might have been interested in the money or property, and who 

was an enemy or an enemy firm, had died or had ceased to be an enemy or an enemy firm; or  

(ii)  some  person  who  was  so  interested  and  who  was  believed  by  the  Custodian  to  be  an 

enemy or an enemy firm, was not an enemy or an enemy firm. 

14.  Proceedings  against  companies  whose  assets  vest  in  Custodian.—Where  the  enemy 
property vested in the Custodian under this Act consists of assets of a company, no proceeding, civil 
or criminal, shall be instituted under the Companies Act, 1956 (1 of 1956), against the company, or 
any director, manager or other officer thereof except with the consent in writing of the Custodian. 

15. Returns as to enemy property.—(1) The Custodian may call for from persons who, in his 
opinion, have any interest in, or control over, any enemy property vested in him under this Act, such 
returns as may be prescribed.  

1. Ins. by Act 3 of 2017, s. 10 (w.e.f. 7-1-2016). 

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(2) Every person from whom a return is called for under sub-section (1) shall be bound to submit 

such return within the prescribed period. 

16. Registers of returns.—(1) All returns relating to enemy property submitted to the Custodian 

under this Act shall be recorded in such registers as may be prescribed.  

(2) All such registers shall be open to inspection subject to the payment of such fees as may be 
prescribed and to such reasonable restrictions as the Custodian may impose, to any person who, in the 
opinion of the Custodian, is interested in any particular enemy property as a creditor or otherwise and 
any such person may also obtain a copy of the relevant portion from the registers on payment of the 
prescribed fees. 

17.  Levy  of  fees.—(1)  There  shall  be  levied  by  the  Custodian  fees  equal  to  1[five  per  centum] 

of— 

(a) the amount of moneys paid to him;  

(b) the proceeds of the sale or transfer of any property which has been vested in him under 

this Act; and  

(c) the value of the residual property, if any, at the time of its transfer to the original owner or 

other person specified by the Central Government under section 18:  

Provided that in the case of an enemy whose property is allowed by the Custodian to be managed 
by some person specially authorised in that behalf, there shall be levied a fee of  1[five per centum] of 
the  gross  income  of  the  enemy  or  such  less  fee  as  may  be  specifically  fixed  by  the  Central 
Government  after  taking  into  consideration  the  cost  of  direct  management  incurred  by  that 
Government, the cost of superior supervision and any risks that may be incurred by that Government 
in respect of the management:  

Provided further that the Central Government may, for reasons to be recorded in writing, reduce 

or remit the fees leviable under this sub-section in any special case or class of cases.  

Explanation.—In this sub-section “gross income of the enemy” means income derived out of the 

properties of the enemy vested in the Custodian under this Act.  

(2) The value of any property for the purpose of assessing the fees shall be the price which, in the 
opinion  of  the  Central  Government  or  of  an  authority  empowered  in  this  behalf  by  the  Central 
Government, such property would fetch if sold in the open market.  

(3)  The  fees  in  respect  of  property  may  be  levied  out  of  any  proceeds  of  the  sale  or  transfer 
thereof or out of any income  accrued therefrom or out of any other property belonging to the same 
enemy and vested in the Custodian under this Act.  

(4) The fees levied under this section shall be credited to the Central Government. 
2[18.  Transfer  of  property  vested  as  enemy  property  in  certain  cases.—The  Central 
Government  may,  on  receipt  of  a  representation  from  a  person,  aggrieved  by  an  order  vesting  a 
property as enemy property in the Custodian within a period of thirty days from the date of receipt of 
such  order  or  from  the  date  of  its  publication  in  the Official  Gazette,  whichever  is  earlier  and  after 
giving a reasonable opportunity of being heard, if it is of the opinion that any enemy property vested 
in the Custodian under this Act and remaining with him was not an enemy property, it may by general 
or special order, direct the Custodian that such property vested as  enemy property in the Custodian 
may be transferred to the person from whom such property was acquired and vested in the Custodian.] 
3[18A.  Income  not  liable  to  be  returned.—Any  income  received  in  respect  of  the  enemy 
property by the Custodian shall not, notwithstanding that such property had been transferred by way 
of sale under section 8A or section 18, as the case may be, to any other person, be returned or liable to 
be returned to such person or any other person.] 

1. Subs. by Act 3 of 2017, s. 11, for “two per centum” (w.e.f. 7-1-2016). 
2. Subs. by s.12, ibid., for section 18 (w.e.f. 7-1-2016). 
3. Ins. by s. 13, ibid. (w.e.f. 10-7-1968). 

8 

 
 
 
                                                             
1[18B.  Exclusion  of  jurisdiction  of  civil  courts.—Save  as  otherwise  provided  in  this  Act,  no 
civil  court  or  authority  shall have  jurisdiction to  entertain  any  suit  or  proceedings  in  respect  of  any 
property, subject matter of this Act, as amended by the Enemy Property (Amendment and Validation) 
Act, 2017, or any action taken by the Central Government or the Custodian in this regard. 

18C.  Appeal  to  High  Court.—Any  person  aggrieved  by  an  order  of  the  Central  Government 
under section 18 of this Act, may, within a period of sixty days from the date of communication or 
receipt of the order, file an appeal to the High Court on any question of fact or law arising out of such 
orders, and upon such appeal the High Court may, after hearing the parties, pass such orders thereon 
as it thinks proper:  

Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient 
cause  from  filing  an  appeal  within  the  said  period,  allow  it  to  be  filed  within  a  further  period  not 
exceeding sixty days. 

 Explanation.—In this section, “High Court” means the High Court of a State or Union territory in 

which the property referred to in section 18 is situated.] 

 19. Protection of action taken under the Act.—No suit, prosecution or other legal proceeding 
shall  lie  against  the  Central  Government  or  the  Custodian  or  an  Inspector  of  Enemy  Property  for 
anything which is in good faith done or intended to be done under this Act. 

20.  Penalty.—(1)  If  any  person  makes  any  payment  in  contravention  of  the  provisions  of        

sub-section (1) of section 7, he shall be punishable with imprisonment for a term which may extend to 
six months, or with fine, or with both and the payment or dealing shall be void.  

(2)  If  any  person  contravenes  the  provisions  of  sub-section  (2)  of  section  10,  he  shall  be 
punishable with imprisonment for a term which may extend to six months, or with fine, or with both.  

(3) If any person fails to comply with a requisition made by the Custodian under sub-section (1) 
or sub-section (2) of section 11, he shall be punishable with fine which may extend to 2[ten thousand 
rupees].  

(4) If any person fails to submit the return under sub-section (2) of section 15, or furnishes such 
return containing any particular which is false and which he knows to be false or does not believe to 
be true, he shall be punishable with fine which may extend to 2[ten thousand rupees]. 

21.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company,  every  person  who,  at  the  time  the  offence  was  committed,  was  in  charge  of,  and  was 
responsible to, the company for the conduct of the business of the company as well as the company, 
shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished 
accordingly:  

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, if he proves that the offence was committed without his knowledge or that he exercised 
all due deligence to prevent the commission of such offence.  

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has 
been committed by a company and it is proved that the offence has been committed with the consent 
or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or 
other officer of the company, such director, manager, secretary or other officer shall also be deemed  
to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.  

Explanation.—For the purposes of this section,—  

(a)  “company”  means  anybody  corporate  and  includes  a  firm  or  other  association  of 

individuals; and  

(b) “director”, in relation to a firm, means a partner in the firm. 

1. Ins.  by Act 3 of 2017, s.14 (w.e.f. 7-1-2016). 
2. Subs. by s. 15, ibid., for “five hundred rupees” (w.e.f. 7-1-2016). 

9 

 
                                                             
22.  Effect  of  laws  inconsistent  with  the  Act.—The  provisions  of  this  Act  shall  have  effect 
notwithstanding  anything  inconsistent  therewith  contained  in  any  other  law  for  the  time  being  in 
force,  1[(including  any  law  of  succession  or  any  custom  or  usage  in  relation  to  succession  of 
property)]. 

2[22A. Validation.—Notwithstanding anything contained in any judgment, decree or order of any 

court, tribunal or other authority,— 

 (a)  the  provisions  of  this  Act,  as  amended  by  the  Enemy  Property  (Amendment  and 
Validation) Act, 2017, shall have and shall always be deemed to have effect for all purposes as if 
the provisions of this Act, as amended by the said Act, had been in force at all material times;  

(b) any enemy property divested from the Custodian to any person under the provisions of this 
Act, as it stood immediately before the commencement of the Enemy Property (Amendment  and 
Validation)  Act,  2017,  shall  stand  transferred  to  and  vest  or  continue  to  vest,  free  from  all 
encumbrances, in the Custodian in the same manner as it was vested in the Custodian before such 
divesting of enemy property under the provisions of this Act,  as if the provisions of this Act, as 
amended by the aforesaid Act, were in force at all material times; 

 (c)  no  suit  or  other  proceedings  shall,  without  prejudice  to  the  generality  of  the  foregoing 
provisions, be maintained or continued in any court or tribunal or authority for the enforcement of 
any decree or order or direction given by such court or tribunal or authority directing divestment of 
enemy property from the Custodian vested in him under section 5 of this Act, as it stood before the 
commencement of the Enemy Property (Amendment and Validation) Act, 2017, and such enemy 
property  shall  continue  to  vest  in  the  Custodian  under  section  5  of  this  Act,  as  amended  by  the 
aforesaid  Act,  as  the  said  section,  as  amended  by  the  aforesaid  Act  was  in  force  at  all  material 
times;  

(d)  any  transfer  of  any  enemy  property,  vested  in  the  Custodian,  by  virtue  of  any  order  of 
attachment, seizure or sale in execution of decree of a civil court or orders of any tribunal or other 
authority in respect of enemy property vested in the Custodian which is contrary to the provisions 
of this Act, as amended by the Enemy Property (Amendment and Validation) Act, 2017, shall be 
deemed to be null and void and notwithstanding such transfer, continue to vest in the Custodian 
under this Act.] 

23.  Power  to  make  rules.—(1)  The  Central  Government  may  make  rules  for  carrying  out  the 

purposes of this Act.  

(2) Without prejudice to the generality of the foregoing power, such rules may provide for—  

(a) the returns that may be called for by the Custodian under sub-section (1) of section 15 and 

the period within which such returns shall be submitted under sub-section (2) of that section;  

(b)  the  registers  in  which  the  returns  relating  to  enemy  property  shall  be  recorded  under 

section 16;  

(c)  the  fees  for  the  inspection  of  registers  and  for  obtaining  copies  of  the  relevant  portions 

from the registers under sub-section (2) of section 16;  

3*     

   *                        *          

* 

                        * 

 (e) any other matter which has to be or may be prescribed.  

(3) Every rule made by the Central Government under this section shall be laid, as soon as may be 
after it is made, before each House of Parliament while it is in session for a total period of thirty days 
which  may  be  comprised  in  one  session  4[or  in  two  or  more  successive  sessions  and  if,  before  the 
expiry  of  the  session  immediately  following  the  session  or  the  successive  sessions  aforesaid],  both 
Houses agree in making any modification in the rule or both Houses agree that the rule should not be 
made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case 

1. Ins. by Act 3 of 2017, s. 16 (w.e.f. 10-7-1968). 
2. Ins. by s. 17, ibid. (w.e.f. 2-7-2010). 
3. Clause (d) omitted by s.18, ibid. (w.e.f. 7-1-2016). 
4. Subs. by Act 40 of 1977, s. 9, for certain words (w.e.f. 27-9-1977). 

10 

 
 
 
 
                                                             
may  be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the 
validity of anything previously done under that rule.  

24. Certain orders  made  under the Defence of India Rules,  1962 and the Defence of India 
Rules, 1971 to continue in force.—1[(1)] Every order which was made under the Defence of India 
Rules, 1962, by the Central Government or by the Custodian of Enemy Property for India appointed 
under  those  Rules,  relating  to  enemy  property  and  which  was  in  force  immediately  before  the 
expiration thereof shall, in so far as such order is not inconsistent with the provisions of this Act, be 
deemed to continue in force and to have been made under this Act. 

2[(2)  Every  order  which  was  made  under  the  Defence  of  India  Rules,  1971  by  the  Central 
Government or by the Custodian of Enemy Property for India appointed under those Rules relating to 
enemy property and which was in force immediately before the expiration thereof shall, in so far as 
such order is not inconsistent with the provisions of this Act, be deemed to continue in force and to 
have been made under this Act.] 

25.  Repeal  and  saving.—(1)  The  Enemy  Property  Ordinance,  1968  (7  of  1968),  is  hereby 

repealed.  

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall 

be deemed to have been done or taken under the corresponding provisions of this Act.  

1. Section 24 renumbered as sub-section (1) thereof by Act 40 of 1977, s. 10 (w.e.f. 27-9-1977). 
2. Ins. by s. 10, ibid. (w.e.f. 27-9-1977). 

11 

 
 
                                                             
